Info-tech

Dish TV stock crashes on licence fee notice; recovers partly

Our Bureau Chennai | Updated on December 28, 2020

Licence fee amount subject to verification and audit, and outcome of court cases pending before TDSAT, J&K High Court, and SC: I&B Ministry

The stock of Dish TV plunged 10 per cent to ₹13.35 on Monday, but recovered sharply to ₹14.19, still down 4.25 per cent against the previous day’s close.

The stock reacted adversely after the Ministry of Information and Broadcasting issued a notice to the company to pay ₹4,164.05 crore towards license fee from the date of issuance of DTH license till financial year 2018-19.

The amount includes the license fee payable and accrued interest thereon.

However, the Ministry of Information and Broadcasting has said that the licence fee amount is further subject to verification and audit, and the outcome of various court cases pending before the TDSAT, the High Court of Jammu and Kashmir at Jammu, and the Supreme Court of India.

“In this regard, we would like to inform that the Ministry of Information and Broadcasting had issued a demand notice in the year 2014 for the license fee pertaining from the date of issuance of DTH license till financial year 2012-13. The said demand notice was challenged by the company before the Hon’ble Telecom Dispute Settlement Appellate Tribunal (TDSAT) and the said demand has been stayed by the Hon’ble TDSAT, which stay continues to be in force,” Dish TV said in a clarification notice to the stock exchanges.

Further, a petition by the company is also pending before the High Court of Jammu and Kashmir where, inter alia, the quantum / applicability of license fee and imposition of interest have been challenged by the company, it further said.

Published on December 28, 2020

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